Did the government shutdown affect you?

The Shutdown's Lesson: You Need an Emergency Fund
NEW YORK October 24, 2013 (AP)
By JOSEPH PISANI AP Business Writer

Let the government shutdown serve as a wake-up call: You need an emergency fund. Thousands of government workers were out of work for more than two weeks, causing many of them to fall behind on their bills. Although they will receive back pay, the event highlights how quickly, and unexpectedly, financial situations can change. The shutdown also showed that no jobs are safe, even government positions which are normally thought of as the safest. Most financial advisers say that you should be prepared to go without a paycheck for several months, not weeks. Here's what you need to know about building that safety fund:

FIGURE OUT EXPENSES
Start by adding up your expenses for necessities, such as rent, health insurance, groceries and utilities, says Mackey McNeill, a certified public accountant and president of Mackey Advisors in Bellevue, Ky. It wouldn't hurt to also add in discretionary spending, too, like going out to the movies or eating out. "Should you cut out Starbucks? Probably," says McNeill, "but a lot of people don't change their behavior."

DETERMINE HOW MUCH YOU NEED
You need to have at least three months in expenses saved up, says Anna Behnam, a financial adviser at Ameriprise in Rockville, Md. But if you're nervous about the security of your job, you should save more. Think at least six months, especially if you've been laid off or furloughed before. "There's a chance it might happen again," says Behnam. If you've never saved for an emergency fund before, start small. "Try saving $100 a month," McNeill says. "Don't overreach." It may take longer to save up, but putting away more than you can afford can lead to failure, and you may just quit. And don't ever take the money out.

MAKE SURE IT'S ACCESSIBLE
Always keep your emergency fund in a bank account that's easily accessible. The stock market's recent record highs may be hard to resist, but you always want to keep the fund out of stocks and in cash. "It should be in the most boring account you can find," says McNeill. That means savings accounts, even though most banks offer interest rates that are close to zero. Behnam says that if interest rates on your bank's certificate of deposits, or CDs, are more attractive, she recommends leaving one month's worth of expenses in a savings account and the rest in a no-penalty CD. That means that you can withdraw money from it at any time, without paying a fee. The account should be separate from your checking account and the accounts you are using to save up to purchase a home or vacation. If you decide to go with an online savings account, make sure it is linked to your primary checking account so that you can make easier transfers, says Behnam.

ASK FOR HELP
If you lose your job, or find yourself furloughed for a short period time and don't have enough in an emergency fund, call the companies that you owe payments to. "Most creditors want to hear from you if you're not paying bills on time," says Hugh Anderson a Las Vegas-based managing director at financial services company HighTower. Call landlords, mortgage providers, credit cards, student loan companies and anyone you may owe money too. "I think most creditors are willing to help," says Anderson.

Why H2O?

Most of us carry bottled water everywhere we go these days. In fact, it has become the second most popular drink (behind soft drinks). But water lovers got a jolt recently when we heard that a new report had found that the benefits of drinking water may have been oversold. Apparently, the old suggestion to drink eight glasses a day was nothing more than a guideline, not based on scientific evidence.

But don't put your water bottle or glass down just yet. While we may not need eight glasses, there are plenty of reasons to drink water. In fact, drinking water (either plain or in the form of other fluids or foods) is essential to your health.

Think of water as a nutrient your body needs that is present in liquids, plain water, and foods. All of these are essential daily to replace the large amounts of water lost each day.

Fluid losses occur continuously, from skin evaporation, breathing, urine, and stool, and these losses must be replaced daily for good health.

When your water intake does not equal your output, you can become dehydrated. Fluid losses are accentuated in warmer climates, during strenuous exercise, in high altitudes, and in older adults, whose sense of thirst may not be as sharp.

Here are six reasons to make sure you're drinking enough water or other fluids every day:

1. Drinking Water Helps Maintain the Balance of Body Fluids. Your body is composed of about 60% water. The functions of these bodily fluids include digestion, absorption, circulation, creation of saliva, transportation of nutrients, and maintenance of body temperature.

2. Water Can Help Control Calories. For years, dieters have been drinking lots of water as a weight loss strategy. While water doesn't have any magical effect on weight loss, substituting it for higher calorie beverages can certainly help.

3. Water Helps Energize Muscles. Cells that don't maintain their balance of fluids and electrolytes shrivel, which can result in muscle fatigue. When muscle cells don't have adequate fluids, they don't work as well and performance can suffer.

4. Water Helps Keep Skin Looking Good. Your skin contains plenty of water, and functions as a protective barrier to prevent excess fluid loss. But don't expect over-hydration to erase wrinkles or fine lines.

5. Water Helps Your Kidneys. Body fluids transport waste products in and out of cells. The main toxin in the body is blood urea nitrogen, a water-soluble waste that is able to pass through the kidneys to be excreted in the urine. Your kidneys do an amazing job of cleansing and ridding your body of toxins as long as your intake of fluids is adequate.

6. Water Helps Maintain Normal Bowel Function. Adequate hydration keeps things flowing along your gastrointestinal tract and prevents constipation. When you don't get enough fluid, the colon pulls water from stools to maintain hydration -- and the result is constipation.

Top Ten Benefits of Eating Breakfast

The literal meaning of the word "breakfast," is to break the fast between dinner and the meal eaten after a person wakes up the next morning. If you think about the amount of time spanning between dinner and breakfast, the meaning of the word is very fitting. For most people, it can be up to 12 hours since their last meal, and yet they are quick to skip it as they rush out the door. Here are 10 benefits of eating breakfast and why it should be considered the most important meal of the day:

1. Energy boost to start the day
2. Sharper focus
3. Breakfast helps reduce morning crankiness
4. Metabolism boost
5. Prevents starvation
6. Keeps you from overeating
7. Allows you to properly portion your meals
8. Helps lower the "bad" cholesterol
9. Breakfast can be nutritious and delicious
10. Eat breakfast to lose weight

~ Matthew Cenzon

Basic Emergency Supply Kit

• Water, one gallon of water per person per day for at least three days, for drinking and sanitation
• Food, at least a three-day supply of non-perishable food
• Battery-powered or hand crank radio and a NOAA Weather Radio with tone alert and extra batteries for both 
• Flashlight and extra batteries
• First aid kit
• Whistle to signal for help
• Dust mask, to help filter contaminated air 
• Plastic sheeting and duct tape to shelter-in-place
• Moist towelettes, garbage bags and plastic ties for personal sanitation
• Wrench or pliers to turn off utilities
• Can opener for food (if kit contains canned food)
• Cash in small denominations

Sandy East Stake September Provident Living Newsletter